Cytek Biosciences Reports Fourth Quarter and Full Year 2023 Financial Results and Provides 2024 Outlook

28 Feb 2024
www.biospace.com
Financial StatementCell Therapy
FREMONT, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Cytek Biosciences Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB), a leading cell analysis solutions company, today reported financial results for the fourth quarter and year ended December 31, 2023. Recent Highlights Total revenue was $58.6 million, or $58.2 million on a non-GAAP constant currency basis, for the fourth quarter of 2023, representing 21% and 14% increases, respectively, over the corresponding period of 2022 Organic revenue was $48.8 million, representing an increase of 1% compared to the fourth quarter of 2022. Fourth quarter revenue from the product lines acquired from Luminex Corporation (“Luminex”) on February 28, 2023 was $9.8 million Total revenue was $193.4 million, or $194.1 million on a non-GAAP constant currency basis, for the full year 2023, representing 18% and 13% increases, respectively, over the full year 2022 Organic revenue was $164.7 million, which was flat compared to 2022. Full year revenue from the product lines acquired from Luminex was $28.7 million Expanded total Cytek organic installed base to 2,148 instruments, with 152 instrument placements during the fourth quarter of 2023 and 478 placements during the full year 2023 (excluding product lines acquired from Luminex) Introduced the Cytek Orion reagent cocktail preparation system, the first-of-its-kind fully automated antibody cocktail preparation instrument for flow cytometry Executed agreement with the Centre for Genomic Regulation (CRG) and the Pompeu Fabra University (UPF) to drive technological innovation and accelerate discoveries for the scientific community Repurchased 5,332,769 shares of common stock during the fourth quarter at an aggregate cost of $34.7 million, and a total of 6,613,780 shares of common stock at an aggregate cost of approximately $44.2 million since the stock repurchase program was announced in May 2023 “We delivered strong fourth quarter performance amidst a challenging macro-economic environment. Our teams navigated well while executing our business strategy, and we took actions to ensure that we remain an agile organization,” said Dr. Wenbin Jiang, CEO of Cytek Bioscience. “As we look ahead to 2024, we remain laser focused on effectively driving strategic growth and delivering long-term profitability. Cytek remains on the forefront of innovation and industry leadership, and we are excited for the large opportunities ahead.” Fourth Quarter 2023 Financial Results Total revenue for the fourth quarter of 2023 was $58.6 million, a 21% increase over the fourth quarter of 2022. Excluding the $9.8 million of revenue from the product lines acquired from Luminex on February 28, 2023, organic revenue was $48.8 million, a 1% increase compared to the same period of the prior year. On a constant currency basis, total revenue for the fourth quarter of 2023 was $58.2 million, an increase of 14% compared to the fourth quarter of 2022. Gross profit was $33.7 million for the fourth quarter of 2023, an increase of 15% compared to a gross profit of $29.4 million in the fourth quarter of 2022. Gross profit margin was 57% in the fourth quarter of 2023 compared to 61% in the fourth quarter of 2022. Adjusted gross profit margin, after adjusting for stock-based compensation expense and amortization of acquisition-related intangibles, was 60% in the fourth quarter of 2023 compared to 62% in the fourth quarter of 2022. Operating expenses were $32.8 million for the fourth quarter of 2023, a 12% increase from $29.3 million in the fourth of 2022. The increase in operating expenses was primarily due to expenses related to increased headcount from the Luminex transaction and personnel-related expenses across research and development and sales and marketing. Research and development expenses were $10.9 million for the fourth quarter of 2023 compared to $9.7 million for the fourth quarter of 2022. Sales and marketing expenses were $11.6 million for the fourth quarter of 2023 compared to $9.0 million for the fourth quarter of 2022. General and administrative expenses were $10.3 million for the fourth quarter of 2023, an increase from $10.5 million for the fourth quarter of 2022. Income from operations in the fourth quarter of 2023 was $0.9 million compared to income from operations of $0.1 million in the fourth quarter of 2022. Net income in the fourth quarter of 2023 was $6.3 million compared to a net income of $3.7 million in the fourth quarter of 2022. Adjusted EBITDA in the fourth quarter of 2023 was $11.0 million compared to $6.6 million in the fourth quarter of 2022, after adjusting for stock-based compensation expense, foreign currency exchange impacts and acquisition-related expenses. Full Year 2023 Financial Results Total revenue for the year ended December 31, 2023 was $193.4 million, an 18% increase over the year ended December 31, 2022. On a constant currency basis, total revenue for the year ended December 31, 2023 was $194.1 million, a 13% increase over the year ended December 31, 2022. Gross profit was $110.1 million for the year ended December 31, 2023, an increase of 9% compared to a gross profit of $101.0 million in the year ended December 31, 2022. Gross profit margin was 57% in the year ended December 31, 2023 compared to 62% in the year ended December 31, 2022. Adjusted gross profit margin in the year ended December 31, 2023 was 59% compared to 62% in the year ended December 31, 2022, after adjusting for stock-based compensation expense and amortization of acquisition-related intangibles. Operating expenses were $136.8 million for the year ended December 31, 2023, a 33% increase from $102.8 million in the year ended December 31, 2022. The increase was primarily due to increased headcount and personnel-related expenses across research and development and sales and marketing. Research and development expenses were $44.2 million dollars for the year ended December 31, 2023, compared to $34.9 million dollars for the year ended December 31, 2022. Sales and marketing expenses were $49.1 million dollars for the year ended December 31, 2023, compared to $33.2 million dollars for the year ended December 31, 2022. General and administrative expenses were $43.5 million dollars for the year ended December 31, 2023, compared to $34.7 million dollars for the year ended December 31, 2022. Loss from operations in the year ended December 31, 2023 was $26.8 million compared to loss from operations of $1.8 million in the year ended December 31, 2022. Net loss in the year ended December 31, 2023 was $11.3 million compared to net income of $2.5 million in the year ended December 31, 2022. Adjusted EBITDA in the year ended December 31, 2023 was $13.7 million compared to $21.2 million in the year ended December 31, 2022, after adjusting for stock-based compensation expense and other non-recurring expenses. Cash, cash equivalents, restricted cash and short-term investments in marketable securities were approximately $262.7 million as of December 31, 2023. The primary utilization of cash throughout the year was attributed to the acquisition and share repurchase program. 2024 Outlook Cytek Biosciences expects total revenue for the year ended December 31, 2024 to be in the range of $203 million to $213 million, representing growth of 5% to 10% over the year ended December 31, 2023, assuming no change in currency exchange rates. For the year ended December 31, 2024, Cytek Biosciences expects to report positive net income. Webcast Information Cytek will host a conference call to discuss the fourth quarter and year end 2023 financial results on Wednesday, February 28, 2024, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. A webcast of the conference call can be accessed at investors.cytekbio.com. About Cytek Biosciences, Inc. Cytek Biosciences (Nasdaq: CTKB) is a leading cell analysis solutions company advancing the next generation of cell analysis tools by delivering high-resolution, high-content and high-sensitivity cell analysis utilizing its patented Full Spectrum Profiling™ (FSP™) technology. Cytek’s novel approach harnesses the power of information within the entire spectrum of a fluorescent signal to achieve a higher level of multiplexing with precision and sensitivity. Cytek’s FSP platform includes its core instruments, the Cytek Aurora™ and Northern Lights™ systems; its cell sorter, the Cytek Aurora™ CS; the Cytek Orion™ reagent cocktail preparation system; the flow cytometer and imaging products under the Amnis® and Guava® brands; and reagents, software and services to provide a comprehensive and integrated suite of solutions for its customers. Cytek is headquartered in Fremont, California with offices and distribution channels across the globe. More information about the company and its products is available at Cytek’s products are for research use only and not for use in diagnostic procedures (other than Cytek’s Northern Lights-CLC system and certain reagents, which are available for clinical use in China and the European Union). Cytek, Full Spectrum Profiling, FSP, Cytek Aurora, Northern Lights, Cytek Orion, Amnis and Guava are trademarks of Cytek Biosciences, Inc. In addition to filings with the Securities and Exchange Commission (SEC), press releases, public conference calls and webcasts, Cytek uses its website ( ), LinkedIn page and X (formerly Twitter) account as channels of distribution of information about its company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters. Such information may be deemed material information and Cytek may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Cytek’s website, LinkedIn page, and X account in addition to following its SEC filings, news releases, public conference calls and webcasts. Statement Regarding Use of Non-GAAP Financial Information Cytek has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three-month and twelve-month periods ended December 31, 2023. Management believes that non-GAAP financial measures, including “Adjusted gross profit margin,” “Adjusted EBITDA” and revenue on a “constant currency basis” referenced above, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the company’s core operating results. Cytek calculates constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results. Cytek presents constant currency information to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. Management uses non-GAAP measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Cytek encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might," "will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding Cytek’s plans to effectively drive strategic growth and deliver long-term profitability; Cytek business opportunities; and Cytek’s expectations that total revenue for the full year ended December 31, 2024 will be in the range of $203 million to $213 million, assuming no change in currency exchange rates, and positive net income for the full year ended December 31, 2024. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management. These statements also deal with future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include global economic and market conditions; Cytek's ability to evaluate its prospects for future viability and predict future performance; Cytek’s ability to accurately forecast customer demand and adoption of its products; Cytek’s ability to recognize the anticipated benefits of collaborations; Cytek’s dependence on certain sole and single source suppliers; competition; market acceptance of Cytek’s current and potential products; Cytek’s ability to manage the growth and complexity of its organization, maintain relationships with customers and suppliers and retain key employees; Cytek’s ability to maintain, protect and enhance its intellectual property; and Cytek’s ability to continue to stay in compliance with its material contractual obligations, applicable laws and regulations.. You should refer to the section entitled “Risk Factors” set forth in Cytek’s most recent Quarterly Report on Form 10-Q filed with the SEC on November 14, 2023, Cytek’s Annual Report on Form 10-K to be filed with the SEC and other filings Cytek makes with the SEC from time to time for a discussion of important factors that may cause actual results to differ materially from those expressed or implied by Cytek’s forward-looking statements. Although Cytek believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. The forward-looking statements in this press release are based on information available to Cytek as of the date hereof, and Cytek disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Cytek’s views as of any date subsequent to the date of this press release. Media Contact: Stephanie Olsen Lages & Associates (949) 453-8080 stephanie@lages.com Investor Relations Contact: Paul D. Goodson Head of Investor Relations pgoodson@cytekbio.com Cytek Biosciences, Inc. Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) Year ended December 31, (In thousands) 2023 2022 Revenue, net: Product $ 157,089 $ 148,600 Service 36,298 15,436 Total revenue, net 193,387 164,036 Cost of sales: Product 65,056 49,955 Service 18,262 13,107 Total cost of sales 83,318 63,062 Gross profit 110,069 100,974 Operating expenses: Research and development 44,151 34,858 Sales and marketing 49,148 33,230 General and administrative 43,546 34,690 Total operating expenses 136,845 102,778 Loss from operations (26,776 ) (1,804 ) Other income, net Interest expense (2,071 ) (2,573 ) Interest income 6,413 4,619 Other income, net 7,794 1,018 Total other income, net 12,136 3,064 (Loss) income before income taxes (14,640 ) 1,260 Benefit from income taxes (3,311 ) (1,224 ) Net (loss) income (11,329 ) 2,484 Foreign currency translation adjustment, net of tax (549 ) (1,611 ) Unrealized (loss) gain on marketable securities (29 ) 17 Net comprehensive (loss) income $ (11,907 ) $ 890 Cytek Biosciences, Inc. Consolidated Balance Sheets (unaudited) (In thousands, except share and per share data) December 31, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 167,299 $ 296,601 Restricted cash 331 2,899 Marketable securities 95,111 44,548 Trade accounts receivable, net 56,636 48,864 Inventories 61,148 48,154 Prepaid expenses and other current assets 11,694 12,954 Total current assets 392,219 454,020 Deferred income tax assets, noncurrent 30,487 20,459 Property and equipment, net 18,405 13,682 Operating lease right-of-use assets 10,853 13,883 Goodwill 16,753 10,144 Intangible assets, net 23,084 4,331 Other noncurrent assets 3,386 2,957 Total assets $ 495,187 $ 519,476 Liabilities and stockholders’ equity Current liabilities: Trade accounts payable $ 2,918 $ 4,805 Legal settlement liability, current 2,561 2,163 Accrued expenses 19,862 21,126 Other current liabilities 8,013 7,960 Deferred revenue, current 22,783 12,986 Total current liabilities 56,137 49,040 Legal settlement liability, noncurrent 16,477 15,596 Deferred revenue, noncurrent 15,132 13,124 Operating lease liability, noncurrent 9,479 12,312 Long term debt 1,648 2,271 Other noncurrent liabilities 2,431 1,587 Total liabilities $ 101,304 $ 93,930 Commitments and contingencies (Note 19) Stockholders’ equity: Common stock, $0.001 par value; 1,000,000,000 authorized shares as of December 31, 2023 and December 31, 2022, respectively; 130,714,906 and 135,365,381 issued and outstanding shares as of December 31, 2023 and December 31, 2022, respectively. 131 135 Additional paid-in capital 423,386 442,887 Accumulated deficit (28,359 ) (17,030 ) Accumulated other comprehensive loss (1,275 ) (697 ) Noncontrolling interest in consolidated subsidiary — 251 Total stockholders’ equity 393,883 425,546 Total liabilities and stockholders’ equity $ 495,187 $ 519,476 Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Three months ended December 31, December 31, 2023 2022 (In thousands) GAAP gross profit $ 33,692 $ 29,374 Stock-based compensation 824 641 Amortization of acquisition-related intangible assets 501 64 Non-GAAP Gross Profit $ 35,017 $ 30,079 GAAP gross profit % 57 % 61 % Non-GAAP gross profit % 60 % 62 % GAAP Net (loss) income $ 6,322 $ 3,718 Depreciation and amortization 2,423 1,465 Provision (Benefit) for Tax (1,142 ) 396 Interest Income (1,447 ) (2,626 ) Interest Expense 393 687 Foreign Currency exchange loss (1,255 ) (1,748 ) Stock-based compensation 5,669 4,465 Acquisition-related expenses - 218 Adjusted EBITDA $ 10,963 $ 6,575 Cytek Biosciences, Inc. Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Year ended December 31, December 31, 2023 2022 (In thousands) GAAP gross profit $ 110,070 $ 100,974 Stock-based compensation 3,213 2,855 Amortization of acquisition-related intangible assets 1,721 250 Non-GAAP Gross Profit $ 115,004 $ 104,079 GAAP gross profit % 57 % 62 % Non-GAAP gross profit % 59 % 63 % GAAP Net (loss) income $ (11,329 ) $ 2,484 Depreciation and amortization 9,230 5,566 Provision (Benefit) for Tax (3,311 ) (1,224 ) Interest Income (6,413 ) (4,619 ) Interest Expense 2,070 2,573 Foreign Currency exchange loss (108 ) (425 ) Stock Based Compensation 22,048 16,595 Acquisition-related expenses 1,512 218 Adjusted EBITDA 13,699 21,167 Revenue Three months ended December 31, 2023 Three months ended December 31, 2022 As reported 58,605 48,336 Non-GAAP constant currency 58,166 51,184 FX Impact [$] (439 ) 2,848 FX Impact [%] (0.7 )% 5.9 % Revenue Year ended December 31, 2023 Year ended December 31, 2022 As reported 193,387 164,036 Non-GAAP constant currency 194,069 171,793 FX Impact [$] 682 7,757 FX Impact [%] 0.4 % 4.7 %
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